Two of Western Australia’s biggest property entrepreneurs have launched legal action against the accounting firm responsible for managing their wealth to court over allegations of professional negligence which led to major tax liabilities.
Multiple writs filed to the WA Supreme Court on June 26 allege HLB Mann Judd and its corporate entities were responsible for the mismanagement of the family trusts of both Dale Alcock and Garry Brown-Neaves.
The pair formerly worked together as co-founders of the ABN Group – one of Australia’s largest residential building and construction companies – until Alcock bought it out in 2016.
In one document filed to the courts by a large combined list of corporate and personal entities including Alcock and his wife alleged systemic failure by HLB Mann Judd from 1990 through to 2026 regarding the firm’s accounting and taxation advice.
The writs alleged the accounting firm provided incorrect advice regarding the tax payable by the plaintiffs, and failed to advise some of those plaintiffs they were subject to family trust distribution tax and franking deficit tax.
Further, it was also alleged the company “engaged in conduct which conveyed to some or all of the plaintiffs that they were not liable to pay franking deficit tax and any associated interest or penalties”.
The writ also alleges the services provided by HLB Mann Judd “failed to comply with statutory guarantees insofar as they were, not provided with due care and skill, not fit for purpose, and/ or did not achieve the desired result, and the failures to comply with these guarantees were major failures.”
Those failures breached both contractual obligations and duties of care, the writ claimed.
It also revealed that in March 2025, the deputy commissioner of taxation issued an audit alerting Alcock to some of the concerns.
Alcock and all associated parties on the writ are demanding compensation for tax penalties and legal expenses incurred as a result of the alleged mismanagement.
Brown-Neaves and his related trustees have separately filed five writs against HLB Mann Judd, relating to a period between 1999 and 2017, when the firm acted as their accountant and tax agent.
He is seeking to recover the cost of the hefty family trust distribution tax liabilities triggered by invalid trust election, and has claimed compensation for the general interest charges and financial penalties applied by the Australian Taxation Office due to the backdated tax issues.
The documents alleged Brown-Neaves had incurred substantial costs and expenses in trying to address the tax shortfalls – and predicted it would continue to cost him – including hiring new legal representation to seek relief from the tax office.
In two of the writs, Brown-Neaves alleged damages from his role as a director of Stonehawk Pty Ltd, the trustee for the Alcock Investment Trust – which was also the first plaintiff listed in the writ filed by Alcock.
Because directors of corporate trustees can be held personally liable for trust tax shortfalls, Brown-Neaves alleged he was made personally liable for significant family trust distribution tax, penalties, and interest charges.
Brown-Neaves, like Alcock, is seeking full compensation for financial damage caused by the alleged accounting failures.
The exact cost of those damages is not yet clear.
HLB Mann Judd declined to comment when approached by this masthead.
Holly Thompson is a journalist with WAtoday, specialising in education and the environment.Connect via X or email.From our partners
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